Right now, 1.6% of all U.S. homes are vacant – sounds like only a few? It is 1.6 million residential properties – sounds like a lot? Yes, it is!
Zombie homes – properties that are in the process of foreclosure while sitting empty have been barely an issue around most of the country for over a year. While it comprises a tiny fraction of the total number of US residential properties, it is still an important aspect to consider.
While zombie homes are at a pretty low number, a noticeable decrease was evident this Q4. ATTOM Data Solutions, curator of the nation’s premier property database and first property data provider of Data-as-a-Service (DaaS), which released its fourth-quarter 2020 Vacant Property and Zombie Foreclosure Report.
The report shows that about 1.6 million residential properties are vacant. 200,065 properties are in the process of foreclosure in Q4, down 7.3% from Q3, while the number of empty properties, 7,612, is down 4.4%.
“The portion of pre-foreclosure properties that have been abandoned into zombie status has ticked up slightly, from 3.7% in the third quarter of 2020 to 3.8% this quarter,” the researchers reported. “Among the nation’s stock of 99.5 million residential properties, zombie properties continue to represent just a tiny fraction—only one of every 13,100 homes.”
The continuous drop in the number of properties at some point in the foreclosure process is due to the temporary ban against lenders foreclosing on government-backed mortgages. The ban covers about 70% of U.S. home loans which was enacted under the CARES Act in March and then extended until the end of 2020.
Stimulus has greatly helped in keeping the number of “zombies” at a sedated pace. The federal government continues to shield the housing market from an economic slide stemming from the worldwide Coronavirus pandemic.
What happens when the temporary prohibition against foreclosure ends?
Well, the government has to come up with a new strategy to help people ease into getting back to normal or a surge of foreclosures may be waiting at the end of the temporary ban.
Forbearance and the ban are all temporary – should you want to be able to get ahead of your game, Analytics Before Foreclosure is your go-to company. Whether you need;
- to sell and get cash quickly.
- to avoid paying a commission and closings costs
- to avoid foreclosure
- a Short Sale due to divorce, distressed or damaged property
- a more reasonable mortgage to get back on track (Homeowners going through a rough spot financially)
Visit www.analyticsbeforeforeclosure.us or claim your FREE discovery call at 866-857-5405
